A business sublets part of its office accommodation.
The rent is received quarterly in advance on 1 January, 1 April, 1 July and 1 October. The annual rent has been
$24,000 for some years, but it was increased to $30,000 from 1 July 2005.
What amounts for this rent should appear in the company’s financial statements for the year ended 31 January
2006?
                Income statement                Balance sheet
A                      $27,500                 $5,000 in sundry receivables
B                      $27,000                 $2,500 in sundry receivables
C                      $27,000                 $2,500 in sundry payables
D                      $27,500                 $5,000 in sundry payables

D